The US Securities and Exchange Commission (SEC) seems to be focused on two altcoin projects. He expanded his research into Mirror Protocol to include Luna. Here are the details…
SEC targets altcoin projects
The legal front for Do Kwon and his company, TFL, is heating up. While the Kwon and Terra Foundation is already under investigation in South Korea, it’s still around since the US SEC issued a subpoena to it in September 2021. Do Kwon objected, saying the SEC had violated their procedures by sending him a subpoena. When the court decided to support the SEC’s position, Kwon ignored it and said the agency had no authority to impeach him or the TFL.
It’s worth noting that the subpoena in question was issued months before Terra’s collapse, so it doesn’t refer to Luna. At that time, the SEC was only concerned with the sale of UST-related securities in the United States. According to Korean “Money Today,” the SEC is revising its claims list to include all the information about the crashed Luna token (now renamed Luna Classic). The September 2021 subpoena was presented to Do Kwon during his visit to the United States. The SEC took action to publish it because of its links to the Mirror Protocol. Mirror Protocol is a DeFi platform created by Do Kwon’s Terraform Labs to track Netflix and Tesla stock prices and sell their securities on UST.
LUNA investigation continues
According to the SEC, this platform is not registered in the US and this leads to investigations into it. Following my Luna collapse, the SEC is investigating the matter to determine whether Do Kwon and his company violated consumer protection laws in their marketing of UST. Despite being a stablecoin that aims to preserve value, UST collapsed along with Luna. Millions of people lost their money in the process.
Alongside the investigations into TFL’s violations of the Securities Act, the SEC has added its new project, Luna-Terra, to the investigation. In this regard, the SEC requests documentation of the LUNA tokens and their public keys, as well as the identities of their holders. Section 6 of the subpoena requests “documents sufficient to identify the LUNA tokens held by Do Kwon or Terra.”
Apparently Do Kwon wasn’t even in South Korea when he and TFL were facing tax evasion charges and investigations related to Terra’s collapse. It was stored in Singapore. A few weeks ago, he was summoned by the South Korean parliament to explain how Luna fell. However, it did not appear. At this point, it is thought that he will not submit an answer to the SEC. Meanwhile, Terra tries to revive her community on Twitter.
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